Bath Iron Works (BIW) offered a job to Thomas Devine, contingent on Devines passing a drug test.

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Bath Iron Works (BIW) offered a job to Thomas Devine, contingent on Devine’s passing a drug test. The testing was conducted by NorDx, a subcontractor of Roche Biomedical Laboratories. When NorDx found that Devine’s urinalysis showed the presence of opiates, a result confirmed by Roche, BIW refused to offer Devine permanent employment. Devine sued Roche, claiming that the ingestion of poppy seeds can yield a positive result and that he tested positive only because of his daily consumption of poppy seed muffins. Devine argued that he was a third party beneficiary of the contract between his prospective employer (BIW) and NorDx (Roche). Is Devine an intended third party beneficiary of the BIW–NorDx contract? Why or why not? Do drug- testing labs have a duty to the persons being tested to exercise reasonable care in conducting the tests? Explain.

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Business Law Text and Cases

ISBN: 978-1285185248

13th edition

Authors: Kenneth Clarkson, Roger LeRoy Miller, Frank Cross

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